United Community Banks, Inc. · NYSE:UCB
United Community Banks — Debt Investor Presentation (January 2018)
27 slides from United Community Banks's debt investor presentation, Jan 9, 2018
Slide 1: Subordinated Notes Offering
January 9, 2018 Subordinated Notes Offering
Slide 2: Forward Looking Statements
2 ucbi.com Forward Looking Statements This presentation has been prepared by United Community Banks, Inc. (“United”) solely for informational purposes based on inf orm ation regarding its operations, as well as information from public sources. This presentation has been prepared to assist interested
Slide 3: Terms of Proposed Offering
3 ucbi.com Issuer United Community Banks, Inc. (NASDAQ: UCBI) Security [ ]% Fixed - to - Floating Rate Subordinated Notes Terms of Proposed Offering Principal Amount $85 million Rating BBB by Kroll Bond Rating Agency Term 10 years, non - call 5 years Covenants Consistent with regulatory
Slide 4: Snapshot of United Community Banks, Inc.
4 ucbi.com Snapshot of United Community Banks, Inc. 3Q’17 Overview Ticker UCBI (NASDAQ) Market Cap $2.1Bn P/E (2018E) 14.4x P/TBV 198% Assets $11.1Bn Loans $7.2Bn Deposits $9.1Bn CET1 12.2% NPAs (Excluding TDRs) /Assets 0.23% ROAA – Operating 1.09% ROTCE – Operating 11.35% • Established in 1950 and
Slide 5: Introduction to UCBI Leadership Team
5 ucbi.com Introduction to UCBI Leadership Team • Over 40 years in banking • Led company from $42 million in assets in 1989 to $10.8 billion today • Trustee of Young Harris College • Georgia Power Company Board Member • GA Economic Developers Association Spirit of Georgia Award recipient J immy C .
Slide 6: UCBI: Who We Are
6 ucbi.com UCBI: Who We Are Full - Service Regional Bank with a Strong Culture Rooted in Sound Credit Underwriting and Growth Cultural Pillars Customer Service Is at Our Foundation VALUABLE FRANCHISE MIDDLE MARKET BANKING SENIOR CARE SBA LENDING ASSET BASED LENDING INCOME PROPERTY LENDING RENEWABLE
Slide 7: Regional Bank with Community Bank-Level Service
7 ucbi.com Regional Bank with Community Bank – Level Service Recognized for Ranked #1 in Retail Banking Customer Satisfaction in the Southeast by J.D. Power Who We Are The Bank That Service Built Regional Bank 1 United Community Bank Regional Bank 2 Regional Bank 3 Regional Bank 4 Regional Bank 5 In
Slide 8: Recent Developments
8 ucbi.com Closing of Four Oaks Acquisition Closed November 1, 2017 S trong community banking franchise with 14 offices located in the attractive Raleigh MSA , North Carolina’s fastest growing market Adds more than $500MM of loans and approximately $600MM of deposits Acquisition of Navitas A
Slide 9: Navitas Transaction Overview
Navitas Transaction Overview
Slide 10: Overview of Navitas
10 ucbi.com Overview of Navitas Net Loans and Leases Notes 1. As of September 30, 2017 2. Originations for the last twelve months ended September 30, 2017 Key Industries Portfolio Statistics (1) Net Investment Loans & Leases ($MM) $349 Total Managed Portfolio ($MM) $415 Average Equipment Cost $36,41
Slide 11: Navitas Transaction Overview
11 ucbi.com Aggregate Transaction Value Approximately $130 million Consideration 35% stock / 65% cash Stock exchange ratio based on the average 10 - day trading price of UCBI stock at close Expected Closing Targeting First Quarter 2018 Ownership Issuance of approximately 1.6 million shares
Slide 12: Navitas Will Be an Important Piece of Our Growth Story
12 ucbi.com Navitas Will Be an Important Piece of Our Growth Story Significantly Enhances Commercial Lending Platform Acquisition of high - performing, scalable equipment finance platform with national reach and exceptional origination capabilities Long tenured management team with proven track
Slide 13: United Financial Highlights
United Financial Highlights Community Bank
Slide 14: Focused on Increasing Profitability
14 ucbi.com Focused on Increasing Profitability 18 15 20 20 20 22 22 22 20 24 25 24 21 22 19 Fee Income / Revenue 2 3.21 3.21 3.32 3.31 3.31 3.30 3.26 3.34 3.41 3.35 3.34 3.34 3.45 3.47 3.54 Net Interest Margin 1 59 59 58 57 59 58 58 59 59 58 58 57 57 56 56 Operating Efficiency Ratio 3 0.85 0.88 0.9
Slide 15: Measured, Organic Balance Sheet Growth Supplemented by Acquisitions
15 ucbi.com Measured, Organic Balance Sheet Growth Supplemented by Acquisitions Loans Over Time 3Q’17 Loan Composition by Product Deposits Over Time 3 Q’17 Deposit Composition 4.6 4.7 4.8 5.2 6.0 6.0 6.1 6.3 6.7 6.9 7.0 7.0 7.2 6.2 6.3 6.4 6.8 7.9 7.9 8.0 7.9 8.4 8.6 8.8 8.7 9.1 15% 19% 25% 3% 8% 23
Slide 16: Deposits Supported by Large Non-Interest Bearing Deposit Base
16 ucbi.com 18 21 19 19 14 13 12 12 11 12 12 14 14 17 20 24 25 25 25 23 24 24 24 26 26 26 26 27 31 35 0 10 20 30 40 Deposits …Supported by Large Non - Interest Bearing Deposit Base Low - Cost Deposit Base (1) … 32% 29% Cost of Total Deposits (bps) Non - Interest Bearing Deposits / Deposits (3) 3Q15
Slide 17: Disciplined Credit Processes
17 ucbi.com Disciplined Credit Processes Structure • Centralized underwriting and approval process for consumer credit • Distributed Regional Credit Officers (reporting to Credit) for commercial • Dedicated Special Assets team • Eight of the top twelve credit leaders recruited post - crisis • Weekly
Slide 18: Careful Management of CRE Portfolio
18 ucbi.com Careful Management of CRE Portfolio CRE & Construction Loan Mix 47% 37% 16% Commercial Construction Owner Occupied CRE Income Producing CRE 45% 11% 9% 9% 7% 7% 6% 3% 3% Total Commercial Construction Loans: $583MM Commercial Residential 25% 22% 11% 11% 10% 9% 7% 3% 2% Total CRE Income Pro
Slide 19: Strong Credit Quality
19 ucbi.com Strong Credit Quality 0.42 0.32 0.29 0.26 0.26 0.26 0.29 0.29 0.28 0.28 0.30 0.28 0.23 0.24 0.23 NPAs (Excluding TDRs) / Assets (%) 14.0 13.6 12.9 12.5 12.3 12.4 12.1 11.9 10.5 10.3 10.2 9.9 8.9 8.7 7.8 NPAs & Loans 90 Days+ / TCE & LLR (%) 0.37 0.38 0.28 0.22 0.22 0.08 0.10 0.09 0.14 0.
Slide 20: NPA Levels Well Below Peer Median
20 ucbi.com NPA Levels Well Below Peer Median 0.23 0.0% 0.5% 1.0% 1.5% 2.0% CBSH BOH WABC BPFH PB CVBF OZRK CBU VLY UCBI UMBF UMPQ FFIN MBFI EWBC PNFP WAL WTFC BXS STBA PFS SNV COLB WAFD FNB FHN CFR STL TCBI ISBC FMBI CATY FCF WBS IBKC BRKL GBCI BKU TCF FULT ASB PACW BOKF TRMK ONB SBNY UBSI HBHC BPO
Slide 21: United Capital and Liquidity
United Capital and Liquidity Community Bank
Slide 22: Capital Ratios
22 ucbi.com Holding Company (1) 3Q16 2Q17 3Q17 Common Equity Tier 1 Ratio 11.0 11.9 12.2 Leverage Ratio 8.4 9.0 9.3 Tier 1 Capital Ratio 11.0 11.9 12.3 Total Capital Ratio 11.9 12.7 13.0 Bank Subsidiary (1) 3Q16 2Q17 3Q17 Common Equity Tier 1 Ratio 12.4 12.8 12.7 Leverage Ratio 9.4 9.7 9.6 Tier 1 Ca
Slide 23: Strong Liquidity Profile
23 ucbi.com 70 72 73 74 74 76 76 76 77 80 80 80 80 81 79 87 90 90 92 89 91 89 91 91 94 92 93 92 93 94 70 80 90 100 Strong Liquidity Profile (%) Loan / Total Deposits 34 33 33 32 31 31 29 30 30 29 27 28 28 28 28 24 24 23 22 23 23 22 22 22 22 22 23 22 21 22 20 25 30 35 (%) Cash & Securities / Total As
Slide 24: Investment Portfolio Overview
24 ucbi.com Investment Portfolio Overview (1) ($000) Book Value Gain / Loss Fair Value AFS Portfolio Composition U.S. Treasuries $74,434 $330 $74,764 U.S. Government Agencies 27,276 452 27,728 Municipals 171,372 1,017 172,389 Corporate Bonds 305,559 2,812 308,371 MBS (Agencies) 1,644,741 3,955 1,648
Slide 25: Interest Rate Risk
25 ucbi.com Interest Rate Risk Immediate Interest Rate Change Effect on Net Interest Income 3Q2017 2016 2015 Change in Rates Shock Ramp Shock Ramp Shock Ramp + 100 basis points 0.57% (0.04%) (0.39%) (0.81%) 0.49% 0.31%
Slide 26: Double Leverage and Interest Coverage
26 ucbi.com Double Leverage and Interest Coverage For the 3 Months Ended 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 Equity Investment in Subsidiaries $1,145,627 $1,199,584 $1,201,868 $1,181,867 $1,219,683 $1,266,180 Consolidated Equity 1,059,737 1,079,293 1,075,736 1,101,544 1,132,642 1,220,642 Doubl
Slide 27: Conclusion
27 ucbi.com Conclusion x One of the Southeast's largest full - service banks, operating 147 offices in Georgia, North Carolina, South Carolina and Tennessee x Culture rooted in excellent customer service, sound credit underwriting and prudent growth x Navitas represents a strategically and financial
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